Upload
frost-sullivan
View
956
Download
4
Tags:
Embed Size (px)
Citation preview
Global Machine-to-Machine (M2M) Communications Test
and Monitoring Equipment Market Smart Homes, Telematics, and Healthcare Drive Demand for M2M Testing
ND0A–30
December 2013
2 NDOA-30
Olga Shapiro Program Manager, Measurement and
Instrumentation
Research Team
Lead Analyst
Research Director
Kiran Unni Research Director, Measurement and
Instrumentation
Sujan Sami Industry Manager, Measurement and
Instrumentation
Strategic Review Committee Leader
Jeannette Garcia Corporate Communications, Measurement and
Instrumentation, North America
+1.210.477.8427
For more information:
3 NDOA-30
Contents
Section Slide Numbers
Executive Summary 5
Market Overview 9
Total Market -
• Value Chain Analysis 30
• External Challenges: Drivers and Restraints 36
• Forecasts and Trends 48
• End-user Analysis 58
• Market Share and Competitive Analysis 70
• M2M Communications Testing and Monitoring—Competitor Profiles 79
Market Trends 83
R&D Segment Breakdown 94
Monitoring Segment Breakdown 99
I&M Segment Breakdown 104
Manufacturing Segment Breakdown 109
4 NDOA-30
Contents (continued)
Section Slide Numbers
The Last Word (Conclusions and Implications) 114
Appendix 117
6 NDOA-30
Executive Summary—Market Engineering Measurements
Market Stage
Growth
Market Revenue
$3,21.7 M
(2013)
Market Size for
Last Year of
Study Period
$981.1M
(2020)
Customer Price
Sensitivity
9
(scale:1 [Low] to 10 [High])
Degree of
Technical
Change
7
(scale:1 [Low] to 10 [High])
Total M2M Communications Test Equipment Market: Global, 2013
Market Overview
Stable Increasing Decreasing Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan
Number of
Competitors
60+
(active market competitors in
base year)
7 NDOA-30
Market Overview—Technology Capability
Definition
• M2M is a technology that allows 2 or more intelligent
machines to communicate with each other without
human intervention via a communication network.
• Once the data is transmitted over the network, it is
collected for analysis and assessed properly to extract
essential information.
End-user Applications
• M2M technology has been used in telematics
applications predominantly. Of late, it has become
important in applications such as smart grids,
industrial automation, retail, healthcare, and
consumer electronics.
• The main advantage of M2M is real-time delivery
of reliable data and easy access to a device or
machine.
Advantage
M2M technology is advancing with the use of embedded
sensors and chipsets in almost every possible device. The
presence of these chipsets makes it possible for end
users to access anything, anywhere. Another important
strength of M2M is the delivery of real-time streaming
information with ubiquitous presence of broadband.
Technologies such as cloud computing and 4G are also
fuelling the growth of M2M.
Impact
M2M is moving from an early growth stage to a
mature stage. Standardization efforts and several
important collaborations across the value chain are
expected to foster the eventual growth of M2M. With
reduced hardware costs, lower data tariffs, and ease
of integration with platform-based services, wider
adoption of M2M communications is expected in
approximately 3 years.
8 NDOA-30
Definitions and Scope of Research
M2M Communications Test Equipment
Market
Geographical
segmentation*
• North America
• Europe
• Asia-Pacific
• Rest of World (ROW)
End-user segmentation
• Consumer electronics
• Communications Market
• Transportation and Telematics
M2M Communications Market
• Financial Services and Retail
M2M Communications Market
• Healthcare M2M
Communications Market
• Utilities and Industrial M2M
Communications Market
• Security and Safety M2M
Communications Market:
• Others
• Research & Development (R&D)
• Manufacturing
• Installation & Maintenance (I&M)
• Monitoring
• Cellular M2M test equipment
• Satellite M2M test equipment
• Wireless M2M test equipment
Product segmentation
*Note: geographical segments and product segments are not analyzed in detail in this research service. Source: Frost & Sullivan
Application segmentation
9 NDOA-30
Market Overview—Definitions
• M2M is a technology that allows 2 or more intelligent machines to communicate with each other
without human intervention via a communication network. Once data is transmitted over the network,
it is collected for analysis and assessed properly to extract essential information.
• M2M technology has been predominantly used in telematics applications. More recently, it has
become important in applications such as smart grids, industrial automation, retail, healthcare, and
consumer electronics.
• The main advantage of M2M is real-time delivery of reliable data and easy access to a device or
machine all over the globe. However, M2M has several challenges such as complicated data traffic
management, lack of standardization across communication layers, lack of suitable security over
multiple data hops and high-operational costs.
• Apart from these challenges, the industry is highly fragmented and there is a low rate of end-user
acceptance. In addition, replacement of human machine interface (HMI) with M2M requires a higher
level of education among end users.
• The data flows from the machine over a network, which could be satellite, wireless, or cellular.
Source: Frost & Sullivan
10 NDOA-30
Market Overview—Definitions (continued)
• Cellular M2M Communications are defined as communication taking place over cellular networks.
• Global system for mobile communications (GSM) is an international standard for cellular
communication in digitized format. It uses the time division, multiple-access (TDMA) format.
• Code division multiple access (CDMA) multiplexes data into a single transmission line, thereby fully
utilizing the available broadband spectrum for digital cellular wireless applications.
• Wideband-CDMA (W-CDMA) is an air interface technology, and UMTS uses this technology for radio
interfacing.
• The 2nd Generation (2G) is a wireless telecommunication standard in which the radio signals in the
form of text and phone data services are encrypted digitally. Technologies such as GSM and CDMA are
used as platforms to operate 2G.
• EGPRS, EDGE, and Evolved EDGE, collectively referred to as 2.5G wireless technologies,
provide upgrade paths for 2G (2nd generation) wireless technologies to achieve higher data rates.
• The 3rd Generation (3G) is an enhanced version of 2G, with extensively incorporated functionalities
such as mobile Internet, email, video calls, and television channels on the mobile, apart from the regular
text and voice services. Technologies such as UMTS and HSPA serve as 3G operational platforms.
Source: Frost & Sullivan
11 NDOA-30
Market Overview—Definitions (continued)
4th Generation (4G) is a form of wireless communication for rapid data transfers retaining all the advanced
features and applications embedded in 3G services. LTE and WiMAX are commonly used technical
launching platforms for 4G services.
Long Term Evolution (LTE) is the superseding technology developed by 3GPP (3rd Generation
Partnership Project) that has resulted in processing larger spectrum requirements. It provides a spectrum
bandwidth of multifold magnitude, compared to the existing technologies, at a lower cost and with faster
data transfer rates.
High-speed Packet Access (HSPA) is a combination of uplink (HSUPA) and downlink (HSDPA)
technologies taking place on a mobile broadband network; it is an advanced version version of UMTS/W-
CDMA.
Wireless M2M Test Equipment
• Broadband Wireless Access (BWA) is the technology through which wireless data is delivered or
provided by means of broadband access.
• Universal Mobile Telecommunication System (UMTS) comprises text data and digital data such as voice,
video, and multimedia.
• High-speed Packet Access (HSPA)is a combination of uplink (HSUPA) and downlink (HSDPA)
technologies taking effect on a mobile broadband network; it is a boosted version of UMTS/W-CDMA.
Source: Frost & Sullivan
12 NDOA-30
Market Overview—Definitions (continued)
Wireless M2M communications
• Worldwide Interoperability for Microwave Access (WiMAX) is an advanced format of BWA, and it
supports wireless cellular mobility and fixed-wireless applications.
• Wireless local access network (WLAN) is a technology by which a mobile device (or computer) can
be connected to the local access network by means of a wireless connection. With WLAN,
connectivity is achieved from an external adapter to a local router and then to the access point of
the device. It includes WLAN technology, 802.11ac and 802.11ad.and emerging technologies such
as MIMO (multiple input, multiple output) in the 802.11n standard
• With Bluetooth, a device-to-device wireless connection can be made for data transfer. WLAN and
Bluetooth vary in hardware composition.
• ZigBee is a low-cost, low-power, wireless sensor network that uses RF signals for communication.
ZigBee’s precision derives from 2-way communication between multiple tags and readers that form
a mesh network. Accuracy increases in conjunction with the amount of points of communication.
• Near field communication (NFC) standards cover communications protocols as well as data
exchange formats. They are based on existing short range, HF technologies working at 13.56
MHz.
Source: Frost & Sullivan
13 NDOA-30
Market Overview—Definitions (continued)
Radio frequency identification (RFID) is a unique method of identifying objects by leveraging
technologies that communicate using radio waves. It includes any technology that communicates by
using radiowaves in low frequency (LF), high frequency (HF (excluding smart cards)), ultra high
frequency (UHF), microwave, ultra wideband(UWB), and other frequencies. RFID devices are designed
to track objects and animals. Therefore, it is capable of long read distances and incorporates security
features.
Satellite M2M communications: Satellite forms a small part of the total wireless M2M market. It is
expected to be a lucrative portion in terms of average sales price for equipment and monthly sales
ARPU. Satellite is mostly used where installations are very difficult. It is also used for transmitting data
safely, especially when cheaper network is being put to use as a primary network for the delivery of
services.
Source: Frost & Sullivan
14 NDOA-30
Market Overview—Definitions (continued)
A smart meter is an electronic device that monitors consumption in more detail than a conventional
meter; and if connected to an M2M network communicates information to the local utility for
monitoring and billing purposes (telemetering). In this study all smart meters are networked via M2M,
smart meters that are not networked are not discussed or quantified.
Hybrid networks can be a combination of RFID, all types of wireless WAN, Wi-Fi, WiMAX, PAN,
wireline, and satellite networks. Hybrid network solutions will increase in popularity during the forecast
period as a way for businesses to ensure data delivery and also decrease service or data transfer
costs. For a small increase in up-front equipment costs, an M2M network can use wireline data
transfer (the cheapest alternative) for the majority of their network traffic, and gain the resiliency of a
fallback wireless or satellite network in case the wireline network is offline.
Source: Frost & Sullivan
15 NDOA-30
Market Overview—Test and Measurement Definitions
Research and development (R&D)
• R&D test equipment includes the RF generators, RF analyzers, load/ functional testers, and protocol
analyzers used in research laboratories during the pre-deployment stage.
• Conformance or certification testers are also R&D solutions. Such solutions are used to test protocol
implementation and check whether equipment conforms to standards. They include one-box testers
that are used to test the performance, protocol, and capability of cellular access devices such as cell
phones and smartphones, as well as connected devices, such as laptops, netbooks, notebooks,
tablets, and wireless-enabled PDAs. It also includes design software used at the R&D level.
Manufacturing
• The test equipment covered includes the systems used to test user equipment and services. These
devices include bench-top as well as single-box testing systems Within the manufacturing segment,
one-box testers is a sub-segment. These testers are simple performance protocol testing solutions.
• It also includes test equipment used for functional testing, at the product level.
Source: Frost & Sullivan
16 NDOA-30
Market Overview—Definitions
I&M
• I&M test equipment primarily comprises RF handheld instruments for troubleshooting and the
maintenance of wireless base stations and repeaters. Access networks, air interfaces, base
station testers, drive tests, and network performance test equipment are included in this segment.
• It also includes equipment used to monitor the network interference.
Monitoring
• The network monitoring systems covered in this segment include both probe-based and software-
based solutions that deliver end-to-end quality of service (QoS) and quality of experience (QoE)
visibility and real-time IP service monitoring and verification.
• Monitoring protocol analyzers and active and passive monitoring systems are also included.
• The study covers the use of test equipment at the chipset and the module level in the M2M
communications value chain.
Source: Frost & Sullivan
17 NDOA-30
Market Overview—Definitions (continued)
Consumer electronics Transportation and telematics
Healthcare Security and safety
Utilities and industrial Financial services and retail
• Laptops/netbooks/notebooks
• eReaders
• Others—connected consumer display and
picture frames
• Vehicle convenience and safety
• Vehicle diagnostics
• Others—fleet and asset tracking
• Patient monitoring and reporting
• Adherence and reminders
• Others—patient-provider collaboration (video
• communication and image uploads and
management)
• Intrusion Detection and Safety Systems
• Remote Surveillance and Access Control
• Others—roadside speed monitors and
automatic lighting controls
• Smart grid components
• Industrial monitoring and control
• Applications and devices
• Others—industrial routers, M2M gateways and
agricultural systems
• POS terminals and devices
• ATMs, vending machines, and kiosks
• Others—digital signage and asset tracking
Source: Frost & Sullivan
18 NDOA-30
Market Overview—Definitions (continued)
Geographic Segmentation Europe—Europe includes the EU states, the
Commonwealth of Independent states (CIS) in Europe,
Turkey, and the Caucasian Republics.
APAC—This region includes
Central Asia, the CIS states in
Asia (Kazakhstan, Kyrgyzstan,
Tajikistan, Turkmenistan,
Uzbekistan, Azerbaijan, and
Armenia), East Asia, Australia,
and Oceania.
Americas—
This region
includes
North, South,
and Central
America as
well as the
Caribbean
islands.
Rest of World—
This region
includes Africa and
the greater Middle
East, which is
comprised of the
Persian Gulf
states, Lebanon,
Jordan, Syria,
Israel, Iran,
Afghanistan, and
Pakistan.
Source: Frost & Sullivan
19 NDOA-30
Market Overview—Key Questions This Study Will Answer
Is the market growing, how long will it continue to grow and at what rate?
Are the existing competitors structured correctly to meet customer needs?
Is this an industry or a market? Will these companies/products/services continue to exist or will they
get acquired by other companies? Will the products/services become features in other markets?
How will the structure of the market change over time? Is it ripe for acquisitions?
Are the products/services offered today meeting customer needs or is there additional development
needed?
Are the vendors in the space ready to go it alone, or do they need partnerships to take their
business to the next level?
Source: Frost & Sullivan
20 NDOA-30
Drivers 1–2 Years 3–4 Years 5–7 Years
Improved wireless standards for smart device
communications H H H
Growing adoption in smart homes, electronics,
and healthcare sectors H H H
Increased collaborations H M M
Increasing government regulations M H H
Growth in ubiquitous computing M H H
Emerging 4G/LTE networks M M H
Impact Ratings: H = High, M = Medium, L = Low
Market Drivers—Impact and Duration
Source: Frost & Sullivan
Total M2M Communications Test Equipment Market: Key Market Drivers, Global, 2013–2020
21 NDOA-30
Restraints 1–2 Years 3–4 Years 5–7 Years
Lack of standardization across layers H H M
Existing fragmentation H H M
Low scalability and reliability H M M
Traffic management is complicated H M L
High operational costs M M M
Impact Ratings: H = High, M = Medium, L = Low
Restraints—Impact and Duration
Source: Frost & Sullivan
Total M2M Communications Test Equipment Market: Key Market Restraints, Global, 2013–2020
22 NDOA-30
Legal Disclaimer
Frost & Sullivan takes no responsibility for any incorrect information supplied to us by
manufacturers or users. Quantitative market information is based primarily on interviews
and therefore is subject to fluctuation. Frost & Sullivan research services are limited
publications containing valuable market information provided to a select group of
customers. Our customers acknowledge, when ordering or downloading, that Frost &
Sullivan research services are for customers’ internal use and not for general publication or
disclosure to third parties. No part of this research service may be given, lent, resold or
disclosed to noncustomers without written permission. Furthermore, no part may be
reproduced, stored in a retrieval system, or transmitted in any form or by any means,
electronic, mechanical, photocopying, recording or otherwise, without the permission of the
publisher.
For information regarding permission, write to:
Frost & Sullivan
331 E. Evelyn Ave. Suite 100
Mountain View, CA 94041
24 NDOA-30
Market Engineering Methodology
One of Frost & Sullivan’s core deliverables
is its Market Engineering studies. They
are based on our proprietary Market
Engineering Methodology. This approach,
developed across the 50 years of
experience assessing global markets,
applies engineering rigor to the often
nebulous art of market forecasting and
interpretation.
A detailed description of the methodology
can be found here.
Source: Frost & Sullivan
25 NDOA-30
Interested in Full Access? Connect With Us
Name Jeannette Garcia
Corporate Communications
(+1) 210.477.8427
Research Authors
Olga Yashkova-Shapiro
Program Manager
Communications Test and Measurement
Measurement and Instrumentation
Facebook https://www.facebook.com/FrostandSullivan
LinkedIn Group https://www.linkedin.com/company/frost-&-
sullivan
SlideShare http://www.slideshare.net/FrostandSullivan
Twitter https://twitter.com/Frost_Sullivan
Frost & Sullivan Events http://gil-events.gilcommunity.com/
27 NDOA-30
Industry Convergence Comprehensive Industry Coverage Sparks Innovation Opportunities
Automotive &
Transportation
Aerospace & Defense Measurement &
Instrumentation
Information &
Communication Technologies
Healthcare Environment & Building
Technologies
Energy & Power
Systems
Chemicals, Materials
& Food
Electronics &
Security
Industrial Automation
& Process Control
Automotive
Transportation & Logistics
Consumer
Technologies
Minerals & Mining